Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) has shown significant stock performance, rallying 46% over the past six months, outperforming the industry and broader market indices [1][2]. Performance Metrics - HRTG's stock has outperformed the industry's growth of 7.5%, the Finance sector's return of 9.8%, and the Zacks S&P 500 composite's rise of 8.2% [1]. - The average target price for HRTG is set at $16.00 per share, indicating a potential upside of 43.8% from the recent closing price [5]. - The Zacks Consensus Estimate for 2025 suggests a 62.7% year-over-year increase in earnings, supported by a 7.4% rise in revenues [6]. Strategic Focus - HRTG is concentrating on enhancing profitability through selective underwriting, rate adequacy, and limiting new business in over-concentrated markets [7]. - The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability and tightening reinsurance markets [7]. - HRTG is targeting growth in the excess and supply (E&S) business and is exploring opportunities in additional states [8]. Financial Health - HRTG has a robust reinsurance program that mitigates exposure to severe weather events, with expectations of a reduced ceded premium ratio due to improvements in the reinsurance structure [9]. - The return on equity for HRTG over the trailing 12 months was 29.2%, significantly higher than the industry average of 7.6% [11]. - The return on invested capital (ROIC) was 19.7%, also exceeding the industry average of 5.8%, indicating effective fund utilization [11]. Valuation - HRTG's stock is currently undervalued, trading at a price-to-book multiple of 1.22, lower than the industry average of 1.59 [12]. - The company has a Value Score of A, suggesting strong valuation metrics compared to peers [12]. Growth Prospects - HRTG's growth is supported by a growing commercial residential business, improved E&S business, better pricing, and expanding margins [13]. - The diversification strategy has led to better risk distribution and lower reinsurance costs, with no single state accounting for more than 26.7% of total insurable value [13].

Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) is experiencing a bullish trend in its stock performance, supported by strong year-to-date growth and favorable technical indicators [1][4]. Company Performance - HRTG shares have increased by 76.1% year to date, significantly outperforming the industry growth of 24.6%, the Finance sector's return of 16%, and the Zacks S&P 500 composite's rise of 24% [4]. - The average target price for HRTG is set at $16.00 per share, indicating a potential upside of 39.4% from the recent closing price [7]. Analyst Sentiment - The consensus estimates for 2024 and 2025 earnings have decreased by 3.8% and 4.4%, respectively, over the past 60 days [8]. - The Zacks Consensus Estimate for 2024 suggests a year-over-year decrease of 23.4%, while the estimate for 2025 indicates a significant increase of 62.7% [8]. Underwriting and Profitability - HRTG is focusing on rate adequacy and selective profit-oriented underwriting, which are expected to enhance profitability [9]. - The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability and tightening reinsurance markets [9]. Business Strategy - HRTG is experiencing a decline in policy count, but average premiums per policy have increased, with expectations that the decline in policies will moderate in the coming quarters [10]. - The excess and surplus (E&S) business is identified as a growth opportunity, with plans to explore expansion into more states [10]. Reinsurance and Financial Health - HRTG's reinsurance program is designed to mitigate exposure to severe weather events, with expectations of a substantial reduction in the ceded premium ratio due to improvements in the reinsurance program [11]. - The company has approved a share repurchase program worth $10 million, although its debt has increased by 2.4% as of September 30, 2024, which is unfavorable compared to industry averages [12]. Return on Capital - HRTG's return on equity over the trailing 12 months was 29.2%, significantly higher than the industry average of 7.6% [13]. - The return on invested capital (ROIC) for HRTG was 19.7%, also exceeding the industry average of 5.8% [13]. Valuation - HRTG's stock is currently undervalued, trading at a price-to-book multiple of 1.26, lower than the industry average of 1.51 [14]. - The company has a Value Score of A, indicating strong valuation metrics compared to peers [14]. Growth Prospects - The company is expected to benefit from a growing commercial residential business, improved E&S business, better pricing, and expanding margins, which bode well for future growth [15].

Core Insights - The focus is on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - The S&P 500 and Nasdaq saw significant increases of 367% and 685% respectively from 2009 to 2019, following a recommendation to buy at the financial crisis bottom in March 2009 [1] - The aim is to assist investors in making money through investments in high-quality growth stocks [1]

Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) has significantly outperformed its industry and broader market indices year to date, with an 81.4% increase in share price [1][2]. Group 1: Financial Performance - HRTG has beaten earnings estimates in three of the last four quarters, indicating strong operational performance [2]. - The consensus estimate for 2024 earnings has decreased by 14.9%, while the estimate for 2025 suggests a substantial increase of 118% [3]. - The return on equity for HRTG in the trailing 12 months was 29.2%, significantly higher than the industry average of 7.5% [8]. - The return on invested capital (ROIC) for HRTG was 19.7%, also above the industry average of 5.8% [8]. Group 2: Growth Strategy - HRTG's growth strategy emphasizes rate adequacy and selective underwriting, with a focus on profitability [4]. - The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability [4]. - HRTG is exploring growth opportunities in the excess and surplus (E&S) business across more states [5]. Group 3: Market Position and Valuation - HRTG shares are currently trading at a price-to-book multiple of 1.42, which is lower than the industry average of 1.50, indicating that the stock is undervalued [10]. - The average price target for HRTG is $16.00 per share, suggesting a potential upside of 35.3% from recent closing prices [9]. Group 4: Risk Management - HRTG is exposed to severe weather events, but its reinsurance program is designed to protect the balance sheet from significant losses [6]. - The company anticipates a reduction in the ceded premium ratio due to improvements in its reinsurance program and increasing gross premiums earned [6]. Group 5: Analyst Sentiment - Despite the strong performance, there is mixed analyst sentiment regarding HRTG, with a Zacks Rank of 3 (Hold) indicating caution [12].

Financial Data and Key Metrics Changes - The company reported net income of $8.2 million, or $0.27 per share, a significant improvement from a net loss of $7.4 million, or a loss of $0.28 per share in the prior year quarter [11][23] - Year-to-date net income reached $41.2 million, or $1.35 per share, compared to $14.4 million, or $0.55 per share in the same period of 2023 [12] - Total revenues for the quarter were $211.9 million, up 13.7% from $186.3 million in the prior year quarter [25] - The net loss ratio improved to 65.4%, down from 74.4% in the same quarter last year [29][32] - The company ended the quarter with total assets of $2.4 billion and shareholders' equity of $279.3 million, with book value per share increasing to $9.10, up 61.1% from $5.65 in the prior year quarter [33] Business Line Data and Key Metrics Changes - The commercial residential business saw a 23.6% increase in premium in force compared to the third quarter of 2023, now accounting for 21.4% of total in-force premium [27] - The E&S business experienced a growth of nearly $25 million, or 116%, compared to the year-ago third quarter [19] Market Data and Key Metrics Changes - The company maintained a robust level of reinsurance coverage through year-end 2024, with a $1.3 billion reinsurance tower for the southeast [28] - Legislative changes in Florida are positively impacting the economics of writing new profitable business in the state [17] Company Strategy and Development Direction - The company is focusing on controlled growth, enhancing rate adequacy, and maintaining disciplined underwriting [16][20] - A strategic pivot to writing personal lines business has begun, which is expected to positively impact earnings [36] - The company aims to be profitable in every state it operates, continuously evaluating rate adequacy [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating continued profitability and growth driven by strategic initiatives [21][36] - The company expects more earned rate to come through in 2025 than in 2024, indicating a positive trajectory [42] Other Important Information - The company has suspended the quarterly dividend to support long-term growth initiatives [35] - The average rating of the investment portfolio is AA- with a duration of 3.19 years, aimed at taking advantage of higher yields [34] Q&A Session Summary Question: Sustainability of Loss Ratio Improvements - Management indicated that while the third quarter typically performs well, favorable trends in the attritional loss ratio suggest a new normal for profitability [38][39] Question: Rate Momentum and Earnings Impact - Management confirmed that significant rate actions taken will continue to benefit earnings, with more expected in 2025 [40][42] Question: Attractive Geographies for Business - Florida remains attractive due to legislative changes, while the Northeast is also being considered for further business opportunities [44] Question: Reserve Development and Legal Environment - Management noted that reserve development is primarily influenced by Hurricane Irma, with ongoing volatility due to the legal environment [47] Question: Potential for Claim Management Fees - Management acknowledged the possibility of some claim management fees but indicated they would not be material [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 ________________________________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.0001 per share HRTG New York Stock Exchange Form 10-Q ________________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PUR ...

For the quarter ended September 2024, Heritage Insurance (HRTG) reported revenue of $211.85 million, up 13.7% over the same period last year. EPS came in at $0.27, compared to -$0.28 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $209.91 million, representing a surprise of +0.92%. The company delivered an EPS surprise of +1250.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Heritage Insurance (HRTG) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1,250%. A quarter ago, it was expected that this property and casualty insurance holding company would post earnings of $0.38 per share when it actually produced earnings of $0.61, delivering a surprise of 60.53%.Ov ...

TAMPA, Fla., Nov. 6, 2024 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported third quarter of 2024 financial results.Third Quarter 2024 Result Highlights Net income of $8.2 million or $0.27 per diluted share, improved from net loss of ($7.4) million or ($0.28) per diluted share in the prior year quarter Gross premiums earned of $354.2 million, up 5.1% from $337.0 million in the prior ...

Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) is currently trading at a discount compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 1.42X, lower than the industry average of 1.62X and the broader sector's 3.8X [1] Company Overview - HRTG has a market capitalization of $362.4 million and an average trading volume of 0.5 million shares over the last three months [2] Valuation Comparison - HRTG shares are attractively valued compared to NMI Holdings (NMIH) but are considered expensive when compared to MGIC Investment Corporation (MTG) and Radian Group (RDN) [3] Stock Performance - HRTG shares have increased by 82.5% over the past three months, outperforming its industry, sector, and the Zacks S&P 500 composite during the same period [4] Technical Indicators - HRTG shares are trading well above the 50-day moving average, indicating a bullish trend [6] Analyst Sentiment - Positive sentiment is reflected as two analysts have raised earnings estimates for 2024 and 2025 by 33.1% and 26.7%, respectively, over the past 60 days [8] Growth Drivers - Key growth factors for HRTG include rate adequacy, selective underwriting, and limiting new business in over-concentrated markets. The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability [9] - HRTG's excess and supply (E&S) business has shown strong performance in states like California, Florida, and South Carolina, with plans to explore growth opportunities in more states [11] Financial Management - HRTG has a solid reinsurance program to protect its balance sheet, especially against coastal risks. Improvements in this program and growing gross premiums are expected to lower the ceded premium ratio [12] - The company has suspended dividend payments to strengthen its financial position and is investing in technology and high-potential segments [12] Profitability Metrics - HRTG's return on equity in the trailing 12 months was 26.3%, significantly higher than the industry average of 8% [13] - The return on invested capital (ROIC) for HRTG was 17.2%, also above the industry average of 6.1%, indicating effective fund utilization [14] Investment Outlook - HRTG's focus on organic growth in its commercial and residential business, along with improvements in pricing and margins, positions it well for future growth. The company currently holds a Zacks Rank 1 (Strong Buy) [16][17]